Let’s have a look at a couple of prime inventory trades going into the ultimate buying and selling day of 2021 and as we head into 2022.
High Inventory Trades for Tomorrow No. 1: Ethereum (ETH-USD)
Bitcoin (CCC:BTC-USD) costs have been teetering over the previous few days, however haven’t damaged down or repaired the harm but. It’s type of simply floating alongside and Ethereum (CCC:ETH-USD) is in an analogous place.
The crypto dipped to the $3,650 to $3,675 space, following 4 straight each day declines.
From right here, now we have a two-day low to measure in opposition to round $3,580. A break of this low very nicely may put the November low in play close to $3,327, together with the 200-day shifting common.
On the upside, let’s see if Ethereum can push as much as the declining 10-day and 21-day shifting averages. Over $4,000 and the 50-day is in play.
Be mindful, Ethereum is in a downtrend. We are going to want a increased excessive to kind so as to break that downtrend.
High Inventory Trades for Tomorrow No. 2: Nio (NIO)
Nio (NYSE:NIO) is having an ideal day, up 15% to this point on the day. This one gave us an unimaginable bullish reversal commerce, which I tweeted about earlier.
In a single fast swoop, the inventory rallied up via all of my short-term upside targets, with the final one being the 21-day shifting common.
The reversal got here to life after Nio undercut the latest low at $27.79, made a brand new low after which reclaimed that stage. Up above $30 now, let’s see if the inventory can keep above this mark going ahead, together with the 10-day shifting common.
On the upside, let’s see if Nio inventory can rally to $35 and the bottom of prior uptrend assist (blue line). Above that places the 50-day shifting common in play.
High Inventory Trades for Tomorrow No. 3: Biogen (BIIB)
On Wednesday, Biogen (NASDAQ:BIIB) rallied 12.5% on the highs and closed increased by 9.5%. The latest decline earlier than that rally took Biogen inventory again all the way down to its lowest ranges since final yr’s spike off the $223 space.
With the rejection from the 50-day and 10-week shifting averages, Biogen inventory hasn’t confirmed that it has its bullish momentum again.
Worth patrons might discover it engaging down within the $215 to $225 space. For different patrons, although, they may need an undercut of this space and a reclaim or a resumption rally to the upside. If it’s the latter, let’s see if BIIB inventory can clear $250 and the 10-week shifting common.
If it might probably, this week’s excessive is in play close to $265.50. Above that and the declining 21-week shifting common is in play.
One different various could be a possible inside week subsequent week (given this week’s giant vary). That would set us up for an inside-and-up weekly rotation within the first week of January.
High Trades for Tomorrow No. 4: Alibaba (BABA)
Alibaba (NYSE:BABA) has been overwhelmed and battered all yr. Shares are down virtually 50% to this point in 2021 regardless of right now’s 9% rally.
Nevertheless, there’s a probably engaging setup on the long-term charts. I’m utilizing the month-to-month chart as an instance the setup. It reveals Alibaba bouncing off the $110 to $112 breakout stage from a number of years in the past.
That’s after falling in 10 out of the final 14 months and in 5 of the final six months. For the latter stretch, Alibaba declined by a doubled-digits share in 4 of these 5 down months (and that was true for all 5 months till right now’s huge rally took December out of the combo).
So what am I searching for?
Now we have the great hammer off the latest low — at $108.70 — and if we will get a monthly-up rotation over $129.50 in January, bulls have their entry.
Be mindful the dimensions of this commerce. We’re utilizing a month-to-month chart and thus, we’re not enjoying it for just some days. We’re searching for a longer-term bounce in Alibaba ought to this setup play out.
On the date of publication, Bret Kenwell didn’t have (both immediately or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the supervisor and creator of Future Blue Chips and is on Twitter @BretKenwell.
